Burberry has named Joshua Schulman as its new CEO, replacing Jonathan Akeroyd immediately. The company issued a profit warning as it anticipates annual profits to be below expectations following a 20% decline in first-quarter sales.
Schulman, previously the president of Bergdorf Goodman from 2015 to 2020, is known for his successful leadership in luxury, fashion, and retail businesses, with a focus on driving growth and creating value.
The brand reported a disappointing first quarter with sales dropping by 21% to £458m over the 13 weeks ending on June 29.
Sales in the Americas and Asia Pacific regions dropped by 23%, while Europe, the Middle East, India, and Africa (EMEIA) saw a 16% decrease in sales.
Burberry’s chair Gerry Murphy stated, “Our Q1 FY25 performance is disappointing. We swiftly initiated a creative transition given the challenging luxury market conditions.
“The anticipated weakness at the start of FY25 has deepened, and if the current trend continues into our Q2, we project an operating loss for the first half of the year.
“Due to the current trading environment, we have opted to suspend dividend payments for FY25. Our strategic measures aim to realign our offerings to resonate more with Burberry’s core customers, alongside introducing fresh and relevant products.
“We anticipate that our planned actions, including cost-saving initiatives, will start to show improvements in the second half of the year, enhancing our competitive position and fostering long-term growth.”
Recent reports indicate that Burberry is planning significant job cuts as part of a cost-cutting program, following a 36% decline in full-year profits to £418m for the year ending on March 30.
Image Source: Dave Jacobs / Shutterstock
